Saehan Bancorp in Los Angeles said Thursday that it lost $1.6 million in the second quarter and that it slashed its work force by nearly 10% in July to save costs.
In the second quarter of 2007, Saehan's net income was $2.1 million.
The $889 million-asset company attributed the loss to a sixteenfold in its loan-loss provision from a year earlier, to $4.9 million. Nonperforming loans rose eightfold from a year earlier, to $26.7 million, or 3% of total assets.
Its margin contracted to 3.47%, from 4.69% a year earlier, because of the Federal Reserve Board's interest rate cuts and an increase in nonaccrual loans.
Saehan said the job cuts should save it about $1.3 million a year.
